Investment Q&A

Q: Hi Peter and Team,

In light of Graeme's recent question and this article:

http://www.theglobeandmail.com/report-on-business/oil-shock-seen-hitting-canadian-bank-profits-in-2016/article28242504/,

Which Canadian banks would you favour if the scenario in the article comes true, or are all Canadian banks in the "same boat"?

At this time, the only bank stock we have is BNS. We have some other "financial" stocks like HCG, EFN, and CXI spread around several accounts, but no other banks.

Thanks as always for the guidance you provide, especially during this crazy, volatile market.

Q: I am going to give you another chance to answer Keith's question from earlier today about what caused the big drop in some 5i "market darlings" yesterday. I cannot believe it is just coincidence that this happened to these stocks on a day when the TSX was the only North American exchange that was open. Somehow I have to believe that there was some, if not manipulation, at least coordination with the Canadian fund managers. My list of stocks that were impacted by about 5% down on the day were BYD, ATD.B, CSU, ESL, CCL.B and SJ. My capital gains on these stocks range between 55% (SJ) and 260% (CSU). My reaction was to buy some CSU yesterday to increase my ACB from 115 to 140 which will at least delay to some extent the day of reckoning when the tax man will get his hands on my capital gains when I want to sell something (which was definitely not yesterday). I thought that might be what Canadian fund managers were doing as well, (ie the funds which have low ACB's on these stocks were willing buyers from those funds who got into these stocks later in the game and were willing to sell for whatever reason. But your answer to Keith said that was not likely. So again, please wrack your brains and see if you can come up with some kind of answer to what happened yesterday. Thanks.

Q: Hi Guys
Did my question re Valero get through to you?
Thxs
Wayne

Q: In my financial sector, RY & TD are both up around 40%, AD is down 35%, I am considering taking some profit from RY and TD to reinvest in AD, purposes are to re-balance and bump yield up a bit.

Is AD a worthwhile one to re-balance into now and is this type of re-balancing a good strategy?

Thanks

Q: Any idea why it appears to not be trading today?

I cannot get any quote info or chart info on approx. 6 sites I have tried.

Q: What are your feelings about POT at this time in terms of any risk of a dividend cut or much worse surviving this storm. Thoughts when comparing with Agrium? Late November the CEO said they would not cut jobs but today POT announces 420 job cuts. Normally this could be interpreted 2 ways - 1 of them positive (fiscal prudence) but is there now a management credibility problem?

Q: Could I have your view on btb.un please . thnks

Q: Now that BIN is up approx 8% at this point. Would you:

1)Hold
2)Sell
3)Sell covered calls against the position?

Thanks

Sheldon

Q: Peter and Team,

Now that we have this offer for BIN, I am thinking about what to replace it with. I am mostly aligned with the model portfolio but don't yet own CCL.B, WSP, or MDA but have always been interested in them. My BIN position is close to 5% of the portfolio following the recent market declines and the offer for BIN. Should I buy any one of the three I named from the model portfolio or split the position and buy two of the names?

Thoughts?

Q: Is there any specific news or event impacting PKI and causing its weakness today? What current opinion do you have on PKI? Thank you.

Q: In reply to Howard's question on Milestone Apartment REIT you quoted a dividend of 3.9%. I have MST in my portfolio and BMO reports that the stock pays 5.59% per year, on a monthly basis.

Q: Good morning
I own BIN and would be interested in your opinion of Waste Connections as a longterm hold? I am tempted to sell at these prices.

Q: Would appreciate your opinion mst.un thnks

Q: Most analysts seem to agree to CDN dollar is going further down compared to the U.S. Some think to 50%? What do you think and is there an ETF or investment that you think would be a good way to play that belief?

Q: The FNV stock is a bit rich for my TFSA, what do you think of it's warrant?

Q: Hello,
I have an asset allocation question. I'm 30, have moderate to aggressive risk tolerance, and am not looking to withdraw anytime soon. How much of my portfolio might I have with a small-cap ETF? Also if you have a link to more resources on the allocation question in general?

Thanks,
Henry

Q: With gold holding around $1100 US (in fact a relatively high gold price historically) and energy costs relatively low (the highest input costs), I'm considering buying a company like Goldcorp as their profit potential should be improving and that the shares are so low and hated. Any thoughts?

Q: I am looking to re-deploy some US$ and would like some recommendations. Looking for reasonable risk level, decent growth potential and some dividend.

Q: I would like your opinion on Equitable Group Inc. traded on the TSX and the 3% interest rate to be paid on savings plus accounts by the new EQ Bank. January 14, 2016 news release "Equitable Bank launches EQ Bank"-Equitable Bank, a subsidiary of Equitable Group Inc. announced the launch of EQ Bank, a new completely digital way of banking. How can a bank pay 3% and is this sustainable?
Thank you,
Nadine

Q: Hello.
I can appreciate you are trying to help us think long term and support Investor behaviour instead of trader mentality.

If you would oblige, some add-on comments to the earlier question would be helpful for me.....January 18, 2016 (asked by Richard)
I recognize RY long term chart works out in considering your comments but looking at REITs(REI.UN) and Pipes like IPL.....the long chart story is different; 5 & 10 year for REI.UN on a price basis is flat if not negative. IPL and PPL are painful to look at with half gone.
Are there investments that should not be held for the long-run even though they may be good companies like IPL,PPL,REI.un?
With account values down so much after a year of decline in 2014 and a sudden drop this year, I (as a retail investor) am beginning to feel like one of the only ones left in some of these declining stocks.
Some thoughts on this would be appreciated.
Dave